Rachel Reeves is said to be digging her heels in over a major increase to defence spending, despite warnings that Britain is “in peril” as a result of its ailing military.
The armed forces are thought to be facing a financial black hole of around £28bn over the next four years, but the chancellor has reportedly only approved plans for a “limited” increase to the Ministry of Defence’s budget amid concerns over how the Iran war will affect the public finances.
